Did you know that the Court of Appeal upheld the High Court Ruling with regards to Legality of Minimum Tax? The Finance Act 2020 had sought to introduce a minimum tax 1% on the gross turnover effective January 2021. However various interested parties appealed at the High Court on the grounds that it would infringe on their Constitutional rights. Having reviewed all the facts submitted, Justice G.V Odunga ruled in favor of the appellant and declared Minimum Tax as unconstitutional and therefore null and void.

Being dissatisfied with the High Court Ruling, the Kenya Revenue Authority appealed at the Court of Appeal. Nonetheless, the Court of Appeal affirmed the earlier High Court Ruling that Minimum tax was indeed unconstitutional. For more information with regards to this and any other tax matters kindly contact our tax service team.